This service offering allows you to view and/or download your experience modifier
data by policy period for the last five years. The experience modifier is the
percentage applied to the base rate to determine your premium. Additionally,
you can see specific rating and/or discount programs for that policy
in each period.
The definitions below will help you take better advantage of this service offering.
- Experience rating - an incentive system to promote safe working
conditions. Employers who become experience rated can be credit rated or
penalty rated, depending on the claims costs record of their particular
businesses.
- Base rating - Base-rated employers pay their workers'
compensation premiums according to base rates recommended by BWC's
administrator and approved by the Workers' Compensation Board of Directors.
Base rating allows employers to pay workers' compensation premiums based on
the average costs of claims filed against all employers in like industries, using the same
manual classifications.
- Published EM - the experience modifier (EM) calculated as of the
survey date. The survey date for private employers is Sept. 30 of the year
prior to the start of the policy year. The survey date for public employers
is March 31 of the year prior to the start of the policy year.
Examples: Sept. 30, 2015 is the survey date for private employers' policy year
beginning Jan. 1 2016. March 31, 2015 is the survey date for public employers'
policy year beginning Jan. 1, 2016.
- Published EM cap - Beginning policy year July 1, 2009, YES or NO
indicates whether or not BWC has capped the EM at 100 percent.
- Current EM - the most recently calculated EM based on changes
to the experience period payroll and/or claim costs in the policy after the
survey date. Here are some of the changes that will result in a recalculation
of your EM:
- Combination/transfer of experience;
- Payroll audits;
- Manual reclassifications;
- Handicap awards;
- Subrogation collections;
- Claim disallowance;
- Claim cost revision.
- Current EM cap - Beginning policy year July 1, 2009, YES or NO
indicates whether or not BWC has capped the most recently calculated experience modifier
at 100 percent.
Rating plans and programs
-
Group-experience rating - a plan that allows employers to be a member of
a group for rating purposes. Employers retain their separate risk identity,
are assessed premiums as calculated using the groups' loss information.
-
Group-retrospective rating - Group-retrospective rating is a
voluntary performance based incentive program. BWC-certified sponsors
create groups of employers who practice effective workplace safety and
claims management to achieve lower premiums than they could as
individuals.
-
Individual-retrospective rating - a plan that allows employers to pay a
discounted minimum premium for the policy year and assume the liability for
the actual costs of claims that occur during that policy year. The claims costs
include compensation and medical payments, and is subject to a claim limit selected
by the employer. The employer is billed annually for 10 years for the incurred
losses limited to the maximum premium. At the 10-year annual evaluation,
BWC calcuates reserves on the claims, employers pay final premiums and the
policy year is closed.
- Drug-Free Safety
Program
- a program that grants a premium rebate to an eligible employer
that meets the program requirements and eligibility standards.
- One Claim Program -
open to private, state-fund employers currently enrolled in a group-experience-rating
program. Employers must have a single significant claim in their experience to participate.
A significant claim is one whose total cost exceeds the expected losses for an employer
based on size and industry also known as total limited losses (TLL) calculated for
that policy year.
All rating plans and programs require employer application and BWC approval.
|